Formula One entered a new era on Wednesday as U.S. billionaire John Malone’s Liberty Media agreed a takeover that values the sport at US$8 billion and raises questions over the role of its colorful, long-time mastermind, Bernie Ecclestone.
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A McLaren spokesman told Sky F1: “It is obviously a significant development, which has only just occurred, but from what we already understand we are confident that it will be a positive step for Formula 1”.
In the agreement, Liberty Media will be investing $ 4.4 billion in F1.
Liberty Media, a United States media and communications company owned by the billionaire John Malone, yesterday struck a deal to buy world’s leading motor-racing championship Formula 1 for $4.4 billion. Concurrently, Liberty acquired 18.7% of Formula One for $746 million in cash.
F1’s biggest current shareholder, investment fund CVC Capital Partners, and the other sellers will still own 65 per cent of Formula One Group stock, and retain board representation. “We are excited to become part of Formula One”.
The transaction values Formula 1 at $ 8 billion minus F1’s debt.
Any deal would need approval from the FIA, world motorsport’s governing body, and anti-trust regulators in Europe and elsewhere.
Liberty Media will instate Chase Carey, current executive vice chairman of 21st Century Fox, as new chairman with Bernie Ecclestone remaining as chief executive “for three years”.
Formula One will soon have a new owner, according to CNBC.
“I see a great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike”. A buyout is expected to be completed by March 2017.
Formula One is run by the Formula One Group, which comprises of several stakeholders.
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Liberty Media has interests in the Atlanta Braves baseball team, satellite radio service Sirius XM, entertainment group Live Nation LYV.N, and minority interests in Time Warner TWX.N and Viacom VIAB.O. Chase Carey has been named as the new Chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director.
